TVS Srichakra Limited, a prominent player in the automotive tyre industry, has made significant strides in brand expansion and reported its financial results for the first quarter of fiscal year 2026.

Global Brand Expansion

TVS Srichakra has executed a landmark 99-year trademark license agreement with its wholly-owned subsidiary, Super Grip Corporation, USA. This strategic move grants TVS Srichakra global usage rights for the 'Super Grip' trademark, enhancing its international brand presence.

Key details of the agreement include:

• Duration: 99 years
• Royalty: 2% on sales made under the Super Grip brand to parties other than Super Grip Corporation
• Scope: Global usage rights for TVS Srichakra, while Super Grip Corporation retains its own usage rights

The company classified this as a related party transaction, conducted on an arm's length basis, highlighting its commitment to transparent business practices.

Q1 FY2026 Financial Performance

For the quarter ended June 30, 2025, TVS Srichakra reported the following consolidated financial results:

The company demonstrated robust growth, with revenue from operations increasing by 3.6% year-over-year. More impressively, net profit after tax nearly doubled, showing a 93.2% increase compared to the same quarter in the previous fiscal year.

Exceptional Items

TVS Srichakra received an interim eligibility certificate from the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) for an Investment Promotion Capital Subsidy. This grant, sanctioned by the Tamil Nadu government, will be received over 12 years in equal annual installments. The company recognized a grant income of ₹18.81 crore for the completed useful life of eligible assets up to March 31, 2025, under exceptional items.

Additionally, the company implemented a Voluntary Retirement Scheme, incurring an expense of ₹1.25 crore during the quarter.

Management Commentary

Shobhana Ramachandhran, Managing Director of TVS Srichakra Limited, stated, "Our first quarter results reflect strong growth and operational efficiency. The global trademark agreement for 'Super Grip' aligns with our strategy to expand our international footprint. We remain committed to innovation and sustainable growth in the automotive tyre sector."

TVS Srichakra Limited continues to strengthen its position in the automotive tyre market through strategic brand expansion and solid financial performance. The company's focus on global growth and operational efficiency positions it well for future success in the competitive tyre industry.

TVS Srichakra Limited , a prominent Indian automotive tyre manufacturer, has announced its financial results for the first quarter, showcasing significant profit improvements despite a modest increase in revenue.

Revenue Growth

The company reported a consolidated revenue growth of 3.6% year-over-year, reaching Rs 819.41 crores. On a standalone basis, revenue increased by 3.1% to Rs 761.74 crores.

Profit Surge

TVS Srichakra witnessed a remarkable surge in profitability:

• Consolidated profit before tax rose by 69.4% to Rs 19.92 crores
• Net profit after tax surged by 93.2% to Rs 12.83 crores
• Standalone net profit grew by 60.9% to Rs 18.12 crores

Key Financial Metrics

Cost Management

The company's improved profitability can be attributed to effective cost management:

• Raw material costs decreased marginally by 0.1%
• Other expenses fell by 10.4%
• Employee benefit expenses increased by 7.3%
• Finance costs remained stable

Exceptional Items

TVS Srichakra recognized Rs 18.81 crores in grant income under exceptional items. This grant is part of an Investment Promotion Capital Subsidy from the Tamil Nadu government, to be received over 12 years.

Voluntary Retirement Scheme

The company continued its voluntary retirement scheme, allocating Rs 1.25 crores for the quarter.

Investment Promotion Capital Subsidy

TVS Srichakra received an interim eligibility certificate for an Investment Promotion Capital Subsidy from the Tamil Nadu government. This structured package of assistance will be disbursed over 12 years, subject to fulfillment of grant-related conditions.

Conclusion

While specific management commentary was not provided, the financial results reflect TVS Srichakra's ability to enhance profitability despite modest revenue growth, likely through effective cost management and operational efficiencies. As the company continues to navigate the competitive automotive tyre market, its focus on profitability and strategic initiatives, such as the investment promotion subsidy, may position it well for future growth and market challenges.